292
wanlfertly the rtatute 00~14 hsve easily
been mds rsorea~4alflc in this retyard. E4 aen-
ceive, bmneV4r, that a21 of the contentionshere
mde by appellents,whsther eatuell~ mired in the
atteok upon tte vmll418p cf tbe ictt or mt, were
nrcersotilyinvclved in tbQ @ttIhokamebe upon it8
aonrtitutlonalityin Burt T. Gaoper, aupre, rhloh
follourd the declriona in t& Jeo&eon end FiOrgrr-
eld a&ems, rupra, en4 Ugeett Co. vr Lee, 488
0. 6. 819, 88 8. ct. 681, 97 L lKd.989, 88
A. 1. R. 6Wg ia all of *blob eaee8 the vaoli@itp
tbcreof, notwithetendlngruoh indefiniteoarsin
the rerpects rtrtod, vu6 auatdaed . . . 5%
ia ii~0i ~ tb s.wdbw25 60lp dr io a x pgro-
vide bar, and by whati tha tax 8e impcsod should
be paid, should not, in view of t&e 4eolrione up-
holding the hot l# Valid, be psrtitt84 to d*feat
it8 pl-OVi$iOn&. . . *
Tbr court did aat Haho to whet extm~t or in *bet proportion
the taxpspre, to-wit, tha,mtoro operaton, WM leoh liable,
It act beini~nr0semx-y to a00m that qwn6ion. lhwor4r, thn
oourt oleerly held that the Aot ilrml14 en4 that fail- of
tbti f.egi8letW8to sake thf8 pl'OVi6iciIsore s~eoif'ioWill not
*br grraltted to d@ffmti it* (bhe A86’8) ~rovisioa&" llhlrr
hol4lag alberlp indiaa8ob ktmt the sour6 bellwed t&fitthr
Aat rbauld and could be enforaed an hbe baeir thet ell oi
the stare8 in II0888 of this kind cdnstituteoae ehaia. If it
lr valia end is to be lnicrcea, e tar is due on 6 ebein oi air-
trsn etorsr (in ths actmeyou eek &bout) end the operaDorm of
those storer must pap it.
51octionB af the AQt piovldes that %eaah epplloatlon
lhall be loomptmled by a ifliag fee of fifty (SO) osn68 for
seoh utore." ?fnthiak that fee rhauld bs p&I by the person
or oorpomtLan ogsratiatg the 6tcre and 6bsnton 6to ootgorn-
tionr in guertlon should per the f f llng fee pmwrlbed in f3eotion
8 a8 foll~~e: GcrporntionA, $1.00 for its two rtorao~ Corpora-
tion B, $a.00 tar ltn four ntoreo) en4 Ccrpora6ton C, &.OO
ior lte tea mtcrtss.
Bootian 8 of the Aot providee a aaalr of lioenee
t4rr 48 follart
*Ths lloenms ieer harrln g~~sorltml eke11 be
urnfolloue:
Boaomble Oebrge H. she&?prd, page 0
'1. Upon ona (1) atom the li6ease fee ehall
be On6 Dollar (81);
"4. Upoa eeoh eddltlonel store in I cm8 of
on~a (1) but not to oromd two (a), the 1fden@,
US. Upon aeob ad~aItIonal sto r e in lxoeme of
two (a) but not to exased flte (8) thr liewee
rw #hall be T%ventpilveDollar8 ($St!J).;
"4. npon eaoh adUltIcimdrtoro In 0x00~~ or
tlve (a) but not to etoeod ten (10) the lioense
fee ehell be fittr Doll- ($5O)j
"8. U&n saoh eddltional #tore in lxeesa of
ten (10) but not I*O~.,+oWd tWelaty(80), the li-
eenmo iw ahall bo Oh8 Xun4red Arty Y&l&era ($180)1
w~eaoh additional ston in lr@wa ot
but"not to cutore thli'ty-ii,ve($8)
the lloenw t4e ehall $0 Two Xuadred Fitly Doll
l4r6 (ItWO)t
A9. Vpoa~.awb rddltiawl atom in ww8* 6f
ttlrty-five(38) bu8 not ta lxooed P:Stj (80)
the lloenea fie ehall be Inca kIundr@dDallera
(96oo)r
W. Up o n lcrohedditlona2 store in lxoem at
fifty (SO), tha liams* fee shall be SetronXundrod
Flfby Dollerr (#WOll . . . *
The H. I. Bu3ubt Orooery Uwpaay 0010
robe1 language that t&m* store8
obein for tax purpoea~~,~ That belag
how 16uohie due under 3eatlon Isfor the oporstion of aixtoon
Btorem. The 8um lr Bl,iiS&OO, anivod sitas tollowrr
1 stox4 $ 1.00
1 sOd~tlontl1
etors (In
8X4886 Of 1) 5.00
3 o4altional 4tnres (In
6XOa3d of 2) 715.00
S aCdft.ionalstoma (In
4X4.865 Of 5) PS0.00
S aauitional storer,(In
4x0445 of 10)
Tbrrtorem
ThI8 atm ef &e3&GG I8 the aus owoa for the opra-
Elan of thfe ohala. As utatad in the forepert of thlr OpIn-
loll,the p,erscnrOr ccrporotioaawho al.0nqulmd to pay ar4
those who vqerate, mlntoln, o en or erwablIshw them lto x w.
There ers aixtnen utoroa, that sa, unit*, In the ehaln. Cor-
poration A opwtitsa two of the aixtaen, Gargoxation B opentm
four of the aixtaan, an4 COrpOratI~ G 0per8te8 10 0i the *lx-
teen. In cth4r wards, CnrporatlonA OpOl%It8~l/&h or *ha
ahaln, Corporation0 aparater l/&h ct the diniD, and Oorpon-
tion G operatea S/i?thr af the ohaln; on4 aooordIW, G-orgora-
tlan A Iu liable tcr l/stb of the tare6 duo under W6tion S,
to-it, lJ8th of $1,immo, pna GarpcwetlonD is Ilob fox
l/&h of asid tllX88, to-wit, l/&h of #l,SSSLOG; a
tic&n G i5 litable inr 5/8tha ai Sal4 taxes,tO-Wit,
$l,ti3fk.O0. Therefore, said outW4Iary oorporstlonrera liable
under Section 5 aa followst CarporatIonA, #lst.GG far Ita
twe atcns$ orcrtionB, $3C&OO for Itr tour atone; and
CorporationC, 770.00 tar lta ten 8toras.
54Paotii.m7 af the @O#$ ffr$ini0 Chain St0x.aT&ixA00
is i(hntloa1with &ofIon 6 of 8ha T4x4rr Act. R3so 3eotIoa 5
Of eaoh or tb:asata 61888448 the tax IlldaOSt idOUt:Otrlly
t!a mm4 longuhgs. The Enita4 Gtetss mistrIct GourC of
ths Fauthm Mstriot of %'8Ut vir&ia aOlldWu44 %eotion 7
Of the ITant ViZ@nia k4t in eh8 Oat8 O? &iii ReflnIn$ CO. V.
lbcr,11 Pe4. SUQQ. UiS, and atate a6 folMws~
*Rafmame fm aim a id8to tha 4solaIoaa
Of the f4d8Td 4Ourbm in .ntsrpnting tlr4 pro-
vialo~a ol asctions &?4O(b 1 Of the hV9nW it& Of
lQL% (40 ,Btat.1081 108&lI, 8na asotlcm 2HO(o) of
the R4VMUO AOt Of i%il ( I Hat. 860) aGereby
it was 4naOt8u tbet two 0 ’ IQW8 at%C8et I 0 %OrpOra-
tlona ahall bs a4en4a sir .im8a, lnt*r alla, ii
on4 corporation owu9 aha it1.y or oontmls sub8tan-
tially all of the atoak a ' tb4 Others.
.-,.
295
%s@tion 7 b4ma 1?1m4enslogy to the &Tcvi-
4lona Of V.4 Tievanue aotr.r8Rmaing thr effllle-
tion of onrporation4tlalkfS4ctin&thclt(Pxon cor-
DOTbt4 ~IlOOS?2IT;
. . . "
!I%4 Gulf artlnlng C~.~.preay
0084, aupr4, we8 r4iem4
84 with epgroval by the court In the R. X. Butt Urooory Co&-
pany aa44r
It la of lntcrast to note the mumor of proportion-
ate 4lstrlbutIcnof thota'~CiS8cl444a In tba Bederr R*vanu*
Act8 rsferrsd to which BOtn wara wuparea to the control pr0-
+:sion of the Kaat Virginia Chain Store %zAot.
tjeatlonJ%o Of th8 Fsderel ltevenuaAot af 1918
provfder In part 4a fallowat
*(b) For the purpom of th?a moatiantwo or
oorpo~t1o.m ehull ba dasgod to be
more ilorjestlo
arfiliated (11 ir one oorpor4tIonmaa aimtlf or
oontrola t:rau&h olooely 8frtiiatea Int8r8ata or
by a anarlnoeor naprim sub4tantIcl~yall thti
atook of th4 &her or othera, or (l?)~
If aubatan-
tislly all tha otoak of two or aor oorporrtlonr
I8 CWn8u or oontroll4aby th4 aamm intarssta.*
said k4t fppth4r p0viae4, a: to th8 pa)r?.ent
0r tb4 tuxL,aa
r0ii0w4I
*In any ant.0 In wbiah a tux 14 w4n44a upon
the beair Of 4 OO!NOlidutbdT8tUA, th4 tot31 t&X
ahell ba ooqsited in the firat Ineatcrncs ~8 u ,Wit
an4 &ball then be 8S49444a upon the re$psotiVe af*
riiiat4a corpor4tloneLz au& proportionaa4 my
b8 agreed upon #non& thyn, or, in the abaeme of
SAJ'auah 4$t48E4ctI th84 On Sha ;$44iaoi t:.4n4t
Incom properly 44el&mbl4 to 4&ch. . ,@'
0~ oonoluolon in tkls opinion au to tks fnennarof asesemsent
Of th4 %0X ItW@ b?! tOSQW8d tQ the IURn’(le~ 0f &B64%48#83s pFOlid8e
for In the Revanue Aot, auprc, just 48 the imt4a fitataaDle-
oompared ths West Virginia Chain
triot Court ot W44t Vl~trginla
&or4 mt to suoh R*tenua Act.
Aa you ocly Inquire
about tin4llabilltp of the sub-’
siaiatp 0ap0mi0na, c, A:, n 3na
In the raot altu4htiQnyou
prsuant, thie opinion 14 ccnfined to the qU84tlQn yQu esk, end
i ii.
296
& are not paming upon the extent of liability, if any,
i of holdlra ooqany X. Our oona~usion end opinion on the
qusetion YOU e8k my be auxmfirlzedan follows: The Texas
Ohafn Tax 18 4rs4ss4d agelnet lnUlrlQualr,aorporatlonr,
et4., rho 0p4n, emtabllsh,optwets and n:aintelnstores.
&oh a pewon, aorporatlon, eto., 0~40 the tax on the stor4s
he or it 80 operate4 slndaaaintalns. TRe three subeidlary
sorporationo here are liable for the taz as one oheln under
Beation 6 of the Texas Aot. Eaoh oorporationmuat pay on
it8 stores. The tax Is one whlah la based on the nuaber of
rtorrr, and, therefore,eaoh corporationpaya an wount
proportionateto the number of atom8 in the one single
ohain that woh oorporatloaoperates.
Yours wry tru3y _
AWROVEDm 27, 1940
COMMIITEC